6 personal loan benefits to check before applying for a personal loan

personal loan benefits to check before applying for a personal loan

In our hectic schedule, we barely get time to think about aspirations and dreams and how to make them true. However, we never forget our dreams, like traveling on an exotic vacation with the family. Most of the time, financial constraints are responsible for our dream to take a backseat. Sometimes, we are in dire need of rapid funding to never miss out on an opportunity searching for ages. It is where SBI personal loan can help you. It is an unsecured loan that can assist you in renovating your home, meeting the medical emergency, and other purposes. But before putting the amount on a personal loan calculator and checking out the interest rate, know the benefits this funding will offer to you.

  • Hassle-free and low documentation

Most banks now have an online loan applications facility. You can upload the required documents with your application form with no difficulty. Some banks even offer a doorstep document collection facility. You only have to provide residence proof, age evidence, stable income certificate, bank account information, and credit history. The sole purpose of these documents is to validate the data and make sure all of them are genuine.

  • Rapid Fund Disbursal

Most people apply for personal loans to meet financial obligations, serendipitous financial opportunities, and more. In the case of other funding options, you have to wait for a long time to get your funds, due to which you might miss golden opportunities. But with personal loans, this is not the case, as there is a rapid fund disbursal within two days of application and verification.

  • Customized solutions

Personal loans are highly versatile, and the borrower can customize them according to their requirement. You can customize the personal loans according to the interest rates, tenure, and repayment schedule. These factors primarily vary on the loan applicant’s paying capacity and credit history. SBI personal loans are approved depending on the extensive loan assessment of the credit history of the borrower.

  • No Necessity for any Collateral

Personal loans are a type of unsecured funding. So there is no necessity of submitting any asset or property as collateral or security. Even if there is any non-payment or default in payment, there will be no security deposit. Hence this feature makes the personal loan a favorite and easily accessible to anyone with a better credit history and employment.

  • Can Include an Insurance Cover

Some banks or financial institutions offer the borrower an insurance cover with the personal loan approval. This insurance cover will ensure the authorities get the loan paid, even when the borrower finds it difficult to pay for the EMI. It can be primarily due to poor health, prolonged unemployment, and more. The borrower has to pay the insurance premium to get coverage for the EMI. But, is this insurance cover worth it in case of personal loans? It might not be if you already have an insurance plan with an amount more than the funding amount.

  • Can also apply for home renovation

With the help of the personal loan calculator, you can know the exact amount you will need for education, traveling, medical emergencies, and marriage. But what most people do not know is that you can apply for personal loans even for home renovation purposes. The bankers also approve the personal loan for house repairing and maintenance, if you meet the criteria for credit score and income.

Key take-away

So by now, you can check out the obvious benefits of a personal loan to meet your financial objective and requirements. Thus before applying for this loan, do extensive research and careful investigation for selecting the most suitable option.